Climate Policy Development

1. Climate Policy Development Tom Peterson The Center For Climate Strategies www.climatestrategies.us August 25, 2005

2. Framework of State Actions • Inventories and forecasts (38 total, 11 recent) • Policies and mechanisms (200+ types) • Plans (32 total, 11 recent) • Statewide goals (9) • Reporting systems (11) • Regional agreements (3) www.climatestrategies.us

3. Sectors • Agriculture • Forestry • Energy Supply • Residential, Commercial, Industrial • Transportation and Land Use • Waste Management www.climatestrategies.us

4. Mechanisms • Voluntary Agreements • Technical Assistance • Information and Education • Financial incentives • Codes and Standards • Market Approaches • Reporting and Registries • Others! www.climatestrategies.us

5. Quantification and Decisions • Reference case • Incremental effects • Decision criteria • GHG reduction potential • Cost effectiveness • Co-benefits and ancillary impacts • Feasibility issues www.climatestrategies.us

6. Trends • Expanded action • Appreciation of existing actions • Successful conflict resolution • Standardization and improvement of process • Consistency and improvement of evaluation techniques • Standardization of overall structure of plans • Customization of specific plans and policies • Focus on greenhouse gases • Focus on economic levers • Integration of co-benefits www.climatestrategies.us

7. Initiation of Actions • Serendipity • Co-benefits and coincidence • Leadership • Policies, plans and goals • Sharing and cooperation www.climatestrategies.us

8. Decision to Act • Understanding present or future mandates • Understanding the problem and potential solutions • Understanding potential costs of inaction • Expanded risk of climate impacts • Loss of opportunity to shape future policy • Loss of opportunity to capture co-benefits • Loss of competitive advantage • Understanding the process for responding • Assessing opportunities for success www.climatestrategies.us

9. Getting Started • Convening the process • Executive orders, laws • Planning the process • Process design, participation, facilitation, analysis, coordination, organization, funding • Preparation for launch • Preliminary fact finding: Inventories and forecasts, existing and potential actions, current assessments and advisory groups www.climatestrategies.us

10. Completion • Launch of the process • Joint fact finding: Inventories and forecasts, policy options, reporting systems, goals • Stepwise evaluations, conflict resolution, iteration to consensus • Concluding the process • Determination of consensus levels • Final report and recommendations to the convening authority • Responding to and adopting recommendations • Follow up evaluations, screening • Plans for adoption or further development of policy • Interagency coordination • Opportunities for cross boundary cooperation www.climatestrategies.us

11. Inventories and Forecasts • Purpose: • Diagnostic tool for policy • Methods: • Start with standard tools and customize • Outcomes/trends: • Comprehensive findings (comparative analysis) • Counterintuitive findings (new alternatives) • Rates and sources of growth (sensitivity analysis) • Sources of new (uncounted) emissions • Policy sensitive issues (consumption v. production) www.climatestrategies.us

12. Policies and Mechanisms • Purpose: • GHG reduction and co-benefits • Methods: • Start with existing and potential actions, identify gaps, customize responses, quantify, and develop alternatives • Outcomes/trends: • Actions across all sectors • Actions across all voluntary and mandatory mechanisms • Diversified portfolios of actions • Focus on quantification and alternatives • High levels of consensus • High levels of effort www.climatestrategies.us

13. Plans • Purpose: • Options to meet goals and objectives • Methods: • Develop action portfolios, reporting systems, goals, adoption processes, cross border initiatives • Outcomes/trends: • Standard process • Custom outcomes • Consistency • Consensus • Avenues for cooperation www.climatestrategies.us

14. Goals • Purpose: • Induce and track action • Methods: • Identify reference case, potential levels of effort • Outcomes/trends: • Use common approaches (base years and percentage reductions in future periods) • Customize to growth, cost, potential reductions • Apply common accounting and reporting approaches www.climatestrategies.us

15. Reporting • Purpose: • Track progress, provide recognition • Methods: • Develop common metrics for unique policies • Outcomes/trends: • Growth in standardization • Expansion to new policies • Measure emissions and emissions reductions www.climatestrategies.us

16. Agriculture • Expand soil carbon storage • Expand energy production and recovery • Reduce farm process/waste emissions • Improve feed efficiency • Reduce product delivery/transportation emissions www.climatestrategies.us

17. Forestry • Protect existing live carbon stocks • Densify existing live carbon stocks • Expand live and product based carbon stocks • Expand renewable energy production • Reduce industry process/waste emissions • Expand low embedded energy wood products www.climatestrategies.us

18. Transportation • Reduce travel demand • Reduce vehicle emissions • Expand use of low emitting fuels • Remove particulates (black carbon) • Reduce emissions from service equipment www.climatestrategies.us

19. Energy Production • Expand low emitting sources • Reduce extraction and process related emissions • Reduce delivery related emissions • Capture and store carbon • Remove particulates (black carbon) www.climatestrategies.us

20. Residential, Comm’l, Industrial • Increase energy efficiency and conservation • Reduce process related emissions • Expand waste recovery and recycling • Expand low embedded energy products • Shift to low emitting product inputs www.climatestrategies.us

21. Waste Management • Expand solid and liquid waste energy recovery • Expand low emitting waste storage • Expand source reduction, reuse, recycling • Expand energy efficient processing of waste www.climatestrategies.us